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The Haryana government has decided to implement the Unified Pension Scheme (UPS), a new pension policy introduced by the Central Government. This decision was made during a Cabinet meeting chaired by Chief Minister Nayab Singh Saini.
The scheme will come into effect from August 1, 2025, and will benefit over 2 lakh government employees in Haryana who were appointed on or after January 1, 2006.
Also Read: UPS Pension Scheme Features PDF
What Is the Unified Pension Scheme (UPS)?
The UPS is meant to provide government employees with a guaranteed monthly pension after retirement and also a family pension in case of the employee’s death. It is designed to offer more financial security to employees and their families.
Also Read: UPS Pension Scheme Features PDF
Key Benefits of the Scheme
If an employee retires after 25 years of service, they will receive 50% of the average basic pay (from the last 12 months) as monthly pension. Even if the employee retires after just 10 years of service, they will still get a minimum pension of ₹10,000 per month.
If the pensioner passes away, their family will receive 60% of the last drawn pension amount.
Dearness Relief (DR), which is similar to the Dearness Allowance (DA) given to working employees, will also be applicable on the pension and family pension. However, DR will only be paid after pension payments begin.
Employees will also get a one-time lump sum payment at retirement. This amount will be 10% of their basic pay plus DA for every completed six months of qualifying service. This lump sum will not reduce the pension they receive.
Employees will contribute 10% of their salary (basic + DA), and the government will match that by contributing 10% to the employee’s individual pension fund.
In addition, the Haryana government will contribute an extra 8.5% of the salary to a separate pool fund. This fund is used to support the guaranteed pension payments promised under UPS. Altogether, the government will contribute 18.5% of the salary, which will cost about ₹50 crore every month or ₹600 crore annually.
Also Read: UPS Pension Scheme Features PDF
How the Funds Will Be Managed
There will be two types of pension funds:
- Individual Corpus: Made up of the employee’s contribution and the 10% government match.
- Pool Corpus: Funded by the extra 8.5% government contribution to help ensure guaranteed pension benefits.
Employees can choose how their personal pension funds are invested, following rules set by the Pension Fund Regulatory and Development Authority (PFRDA). If no choice is made, the money will be invested in a default plan set by PFRDA. The Haryana government will manage the investments made in the pool corpus.
Also Read: UPS Pension Scheme Features PDF
For Retired Employees
If a retired employee opts into UPS, the PFRDA will decide how to calculate and provide the extra amount needed to meet the guaranteed pension amount.
Final Choice and Applicability
Existing employees and those joining in the future can choose either the UPS or stay with the existing NPS. Once an employee chooses the UPS, that decision will be final. The government has said that a separate decision will be made later for employees of state Boards, Corporations, PSUs, and Universities.
This move is expected to bring more stability and security for government employees, especially with its promise of minimum pension and flexible investment options.
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